Cindy Lou's Parents Passed Away While She Was Still Dependent

Cindy Lou's parents passed away while she was still dependent on them,and their will designated that a trust should be established with their estate proceeds to care for her.The following transactions occurred in the first two months following their deaths.
1.The trust account was opened with the $2,000,000 in funds received from the estate.The funds were deposited into a non-interest bearing checking account to be used for expenses.
2.$1,500,000 was put into a multi-year certificate of deposit which earned 3% annually,with interest paid monthly back to the checking account.
3.One month's interest from the certificates of deposit was received.
4.The bank's trust administration fee was paid for $65.
5.Tuition was paid for the boarding school where Cindy Lou was living for $6,500.
Required:
Prepare the journal entries for the listed transactions.Disregard the impact of estate and income taxes.

Correct Answer:

Verified

None...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

View Full Answer For Free